Donate Air Miles to lower your taxes

Donate Air Miles to lower your taxes

Donating your unused loyalty reward points is an easy way to bring down your tax bill, and it won’t cost you a dime.

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The federal government rewards those who give to charity with a tax credit: 15% on donations under $200 and 29% on larger gifts. But credits jump to 40% and 54% for first-time donors giving between $200 and $1,000. While most Canadians donate cash or stocks to earn these kinds of tax breaks, you can also get a tax receipt for donating your Air Miles. Other popular loyalty programs like Aeroplan, Petro-Points, Shoppers Optimum and Club Sobeys also make it easy to donate to charities, but you won’t get a tax receipt. For Air Miles members, gifting travel points to charities, including the Canadian Red Cross and Kids Help Phone, can be a no-brainer if you’re already in austerity mode and have decided a vacation isn’t in your near future. Not only will you keep more of your hard-earned money come tax time, but you’ll also be helping a registered charity that regularly improves the lives of thousands of people.

Chart: Loyalty programs that allow you to donate points

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